ASIC weak on super fee disclosure: ISA

10 January 2019

Industry Super Australia (ISA) has warned that the Australian Securities and Investments Commission’s (ASIC’s) latest recommendations on super fee disclosure don’t go far enough, while also questioning the regulator’s decision to release the fee consultation before the Royal Commission’s recommendations are handed down, which may well cover the issue.

The industry group said that the proposals released by ASIC yesterday would only further complicate the current disclosure regime, slamming them particularly for not recommending an end to the current disclosure regime.

It also said that the regulator’s efforts to address the relevant consumer comparability concerns were “similarly disappointing”.

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The proposals would require platform providers to include a “prominent statement” in fees and costs templates, advising that disclosed fees simply relate to “gaining access” to the underlying products, without factoring in the ongoing costs of those products.

“The concept of including a ‘prominent statement’ is, to be blunt, a cop-out,” ISA director of research and campaigns, Nick Coates, said.

“It’s essentially just a warning to members that what you see is not what you get when it comes to platform fees. This simply continues to place consumers at risk, rendering it almost impossible to make meaningful comparisons between products.”

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Sounds like what Industry Funds do every day of the week hiding "General advice" Intra Fund Advice or they should call it personal advice regarding switching investment but then hiding this as an admin Fee without full disclosure. Which is effectively charging every industry fund fee for no service = we are going to charge everyone for "Intra Fund Advice" if you use this service or not that is = fee for no service

Pretty funny for the union funds to be complaining about disclosure, when for years they hid fees to help push their low fee, compare the pair campaign/lies. If the ISA is complaining then it only means one thing, it is something that benefits clients and makes it harder for the union funds to push their own agenda.

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